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EMAILED ON February 9, 2018 BY THE HUSTLE

12 years in, Twitter finally turns a profit

Yesterday, the 12-year-old social media network posted their Q4 earnings — and for the first time ever, they put up a modest profit.

As we anticipated back in October, the company was in the green ($91m) for the quarter, on a reported revenue of $732m (a 2% bump from this time last year).

Chalk it up to targeted ads

This newly minted profitability is largely thanks to improvement in the click-through rate of Twitter’s targeted ads, led by machine learning advancements.

Twitter also benefited from a boost in global growth: while revenue was down 8% in the US, it shot up 17% in the rest of the world, including a 34% increase in Japan.

It’s about damn time

Twitter has experienced a bit of a stagnation in recent years and has suffered slower than expected user growth.

When the company went public in 2013, they had 218m users; now they’re at 330m — the same as Q3, and only a 4% gain YoY. By comparison, Facebook went from 845m to 2.13B users in a similar timeframe.

Regardless, the company’s profitability excited investors: stock jumped as high as $34 per share (a 20% hike) after the earnings call.

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